Small businesses face fines for excessive credit and debit card surcharges from September 1 multinational debit card owned by mastercard

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Big businesses have faced the same ban since last september, and the change prompted airlines to ditch fees of about $7 for paying for a domestic flight via credit card, instead moving to a percentage fee

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All businesses will be banned from imposing excessive credit card surcharges from september 1. Photo: glenn hunt

The ACCC is enforcing the ban and will be able to issue fines of $2,500 for sole traders that breach the rules, $12,000 for proprietary limited companies, or $120,000 for an ASX-listed company. For more serious breaches it can seek penalties of up to $1.3 million from a court.Multinational debit card owned by mastercard

To help businesses figure out what is excessive banks have had to tell their business customers what they are being charged to accept credit card and debit payments in percentage terms.

Bessie hassan of finder.Com suggested business owners check their bank statements, to avoid the threat of fines or damage to their reputations.

If customers cotton on that you’re charging more than you should, you could risk losing loyal customers, ms hassan said.

The rule could cause changes for businesses that charge a flat fee for paying on card.

If a business charged an extra 10c for a $3.50 cup of coffee bought on credit, for example, that is equal to a 2.8 per cent surcharge, which may be excessive for the most common credit cards.

Dr schaper said small business could still charge a flat fee, but they needed to make sure such surcharges were below their cost of accepting that payment in percentage terms.Multinational debit card owned by mastercard

Even so, he said there had not been a large number of complaints so far about surcharging among smaller businesses.

The ACCC is not lying awake at night worrying about every coffee shop in the country, obviously our priority for these are large, systemic issues affecting large numbers of businesses. We expect small businesses to comply, but we understand that some of them are going to have to grapple with some of these issues, he said.

Taxis are not included in the surcharge ban because they are covered by state laws.

By submitting your email you are agreeing to fairfax media’s

Terms and conditions

And

Privacy policy.

Big businesses have faced the same ban since last september, and the change prompted airlines to ditch fees of about $7 for paying for a domestic flight via credit card, instead moving to a percentage fee

multinational debit card owned by mastercard

• SHARE

• share on facebook SHARE

• share on twitter TWEET

• link

All businesses will be banned from imposing excessive credit card surcharges from september 1. Photo: glenn hunt

The ACCC is enforcing the ban and will be able to issue fines of $2,500 for sole traders that breach the rules, $12,000 for proprietary limited companies, or $120,000 for an ASX-listed company. For more serious breaches it can seek penalties of up to $1.3 million from a court.

To help businesses figure out what is excessive banks have had to tell their business customers what they are being charged to accept credit card and debit payments in percentage terms.

Bessie hassan of finder.Com suggested business owners check their bank statements, to avoid the threat of fines or damage to their reputations.Multinational debit card owned by mastercard

If customers cotton on that you’re charging more than you should, you could risk losing loyal customers, ms hassan said.

The rule could cause changes for businesses that charge a flat fee for paying on card.

If a business charged an extra 10c for a $3.50 cup of coffee bought on credit, for example, that is equal to a 2.8 per cent surcharge, which may be excessive for the most common credit cards.

Dr schaper said small business could still charge a flat fee, but they needed to make sure such surcharges were below their cost of accepting that payment in percentage terms.

Even so, he said there had not been a large number of complaints so far about surcharging among smaller businesses.

The ACCC is not lying awake at night worrying about every coffee shop in the country, obviously our priority for these are large, systemic issues affecting large numbers of businesses.Multinational debit card owned by mastercard we expect small businesses to comply, but we understand that some of them are going to have to grapple with some of these issues, he said.

Taxis are not included in the surcharge ban because they are covered by state laws.